Logistics Without Limits

The world of logistics is far more than moving boxes from A to B. Innovative companies like Bibby Distribution now play a key role in helping companies to find a competitive route to market, allowing entrepreneurial businesses to focus on what they do best, without having to worry about letting their customers down.

AeroBed, an electrically-inflated guest and camp bed brand, supplying products to a host of well-known high street names, including John Lewis, Argos and Littlewoods, was struggling with the increasing demands being placed on its existing logistics provider by the strong growth in sales.

Relinquishing control of product packaging, labelling and delivery was a big decision to take, but, after careful deliberation, the business entrusted many of the functions it considered as core parts of its business to top-ten logistics provider Bibby Distribution.

The company is now free to take care of marketing and developing customer relationships, leaving its logistics partner to handle everything from importing products from China to labelling and boxing products on arrival according to individual customer specifications.

AeroBed can access stock information at all times through an online system that gives the company accurate data on the volume of products held by Bibby Distribution, allowing it to respond to increases in customer demand and new business opportunities with the confidence it would have from managing stock itself, but without the headache.

Bibby Distribution impressed AeroBed with its long record of helping its customers maintain high service levels with 0% product damage and a dedicated team of client managers who are trained to be part of the customer's team, taking a high level of responsibility and accountability for the smooth running of the contract.

Today, Bibby Distribution handles more than 3,000 pallets at any one time for AeroBed, taking delivery of the unpacked product from the international arm of its business, which imports the beds from China, as well as handling customs and freight forwarding for the rest of Europe.

Monthly stock reconciliation reports give the company an insight that allows it to optimise stock against customer demand, analyse sales trends and shift non-selling lines.

Bibby Distribution chief executive Iain Speak says: "The contract we have with AeroBed is a great example of where the logistics industry is going. We recently adopted the slogan 'logistics without limits' and this project really shows that thinking in action.

"So many businesses have an excellent product but get so involved in controlling all aspects of the supply chain that they can take their eye off the ball. AeroBed has proved that you can have your cake and eat it – focusing on what you do best, while working closely in partnership with us as a flexible logistics provider that can help you meet the ever-changing demands of your customers."

AeroBed managing director Julian Williams says: "We had quotes from three large logistics operators, but Bibby stood out because it demonstrated a real understanding of our business issues and was very proactive in suggesting improvements that could be made to our supply chain.

"One of the key advantages is the 'end-to-end' solution, including sea freight, which was not part of our initial thinking but has definitely lowered our costs and reduced the time it takes to get goods into warehouse.

"Previously the business had chosen logistics partners based on what was perceived to be lower cost. However, my experience has been that you get what you pay for and since moving to Bibby our service levels have improved beyond recognition which has driven our internal costs down and customer satisfaction is at an all time high."

While many larger companies like AeroBed now benefit from a close working relationship with their logistics providers, smaller ones are also getting in on the act.

Baby products distributor Hardenberg & Co. started using Bibby Distribution's services two years ago to handle what was initially a modest stockholding for the company. By supporting it every step of the way, Bibby Distribution has helped to quadruple its business through stock optimisation, operational insight and support in winning contracts.

Marc Hardenberg managing director of Hardenberg & Co. says: "Letting a supplier take over the running of your stock is a very difficult decision to make because you naturally feel as though you are relinquishing control of a key part of your business. But working with Bibby Distribution we found that any concerns we had quickly disappeared, leaving only benefits to the smooth and more efficient management of our stock which of course brought with it a welcome cost saving."

Bibby Distribution even offers a repackaging service for goods returned with damaged packs and correctly disposes of faulty items and cardboard waste, meaning Hardenberg's staff never needs to come into contact with the stock.

Iain Speak says: "We treat customers exactly the same. Whether they need tens or thousands of products handling or a few hundred, we offer a great service at a competitive cost. As our clients' success equates to our own, it makes sense for us to become one of the team and to support them in their goals."